Potbelly Got A $10M Small Business Loan After Returning One Earlier This Year
Potbelly Sandwich Shop has obtained a Payment Protection Program (PPP) loan for $10 million, according to a filing on August 14 with the Securities and Exchange Commission, as previously reported on by Restaurant Business Online.
The news comes after the chain returned a PPP loan back in April. Public outcry came as chains received the loans designed to aid small businesses and some chains like Shake Shack, sweetgreen, and Ruth's Chris made similar decisions to return the loans. But Potbelly said it applied for a loan again in the next round because they said they felt a loan would "protect our employees’ jobs and support their families that rely on Potbelly for their livelihoods," according to a statement obtained by RB.
“While we qualified for a loan in the first round of the Payroll Protection Program, we returned it when it looked like many other companies would be left without help,” the statement continued: “In the next round, the program was about to close with billions of dollars in available funds still remaining.”
While all industries have been affected by COVID-19, the food and hospitality industries have been particularly hard hit. Independent restaurants have been projected to close in large numbers and even larger chains have started closing locations or have announced plans to close lower-performing locations more aggressively in an effort to stay financially stable. In May, Potbelly announced that it was considering closing up to 100 shops and said that it was "taking the necessary steps to support and fortify our business."
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